4 Stocks Going Ex-Dividend Tomorrow: MIC, MFA, COL, LINE

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Tomorrow, Aug. 8, 2013, 26 U.S. common stocks are scheduled to go ex-dividend. The dividend yields on these stocks range from 1.1% to 11.3%. All of these stocks can be found on our stocks going ex-dividend section of our dividend calendar.

Owners of Macquarie Infrastructure Company (NYSE: MIC) shares as of market close today will be eligible for a dividend of 88 cents per share. At a price of $56.27 as of 9:36 a.m. ET, the dividend yield is 6.2%.

The average volume for Macquarie Infrastructure Company has been 283,700 shares per day over the past 30 days. Macquarie Infrastructure Company has a market cap of $3.0 billion and is part of the wholesale industry. Shares are up 24.7% year to date as of the close of trading on Tuesday.

Macquarie Infrastructure Company LLC, through its subsidiaries, owns, operates, and invests in a diversified group of infrastructure businesses in the United States.

TheStreet Ratings rates Macquarie Infrastructure Company as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Macquarie Infrastructure Company Ratings Report now.

Owners of MFA Financial (NYSE: MFA) shares as of market close today will be eligible for a dividend of 28 cents per share. At a price of $7.83 as of 9:36 a.m. ET, the dividend yield is 11.3%.

The average volume for MFA Financial has been 3.8 million shares per day over the past 30 days. MFA Financial has a market cap of $2.8 billion and is part of the real estate industry. Shares are down 3.5% year to date as of the close of trading on Tuesday.

MFA Financial, Inc., a real estate investment trust (REIT), invests in residential agency and non-agency mortgage-backed securities (MBS). The company has a P/E ratio of 9.82.

TheStreet Ratings rates MFA Financial as a hold. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity. You can view the full MFA Financial Ratings Report now.

Owners of Rockwell Collins (NYSE: COL) shares as of market close today will be eligible for a dividend of 30 cents per share. At a price of $74.09 as of 9:35 a.m. ET, the dividend yield is 1.6%.

The average volume for Rockwell Collins has been 650,100 shares per day over the past 30 days. Rockwell Collins has a market cap of $10.0 billion and is part of the aerospace/defense industry. Shares are up 27.4% year to date as of the close of trading on Tuesday.

Rockwell Collins, Inc. designs, produces, and supports communications and aviation electronics for commercial and military customers worldwide. It operates in two segments, Government Systems and Commercial Systems. The company has a P/E ratio of 17.01.

TheStreet Ratings rates Rockwell Collins as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. You can view the full Rockwell Collins Ratings Report now.

Owners of Linn Energy (NASDAQ: LINE) shares as of market close today will be eligible for a dividend of 24 cents per share. At a price of $26.75 as of 9:35 a.m. ET, the dividend yield is 11%.

The average volume for Linn Energy has been 4.2 million shares per day over the past 30 days. Linn Energy has a market cap of $6.2 billion and is part of the energy industry. Shares are down 24% year to date as of the close of trading on Tuesday.

Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and natural gas properties.

TheStreet Ratings rates Linn Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity. You can view the full Linn Energy Ratings Report now.

One benefit of owning a stock is the potential that you will be paid a dividend. The distribution of dividend payments is another way for a company to share its profit with you. A dividend means that the company pays you a certain amount of money, either as a one-time payment or more commonly on a quarterly basis, for each share of stock you own.

Many times, dividends come at the expense of greater price appreciation, because the company is distributing its profits to shareholders rather than reinvesting the profits back into the growth of the company. However, companies that pay dividends can be very attractive to investors when they offer a steady stream of income. There are some important terms and dates an investor should be familiar with before purchasing any dividend-paying companies. Let's work through an example to help better explain some of these terms:

On March 1, ABC Widget Company has decided that because it holds excess cash and lacks investment opportunities, it would like to reward shareholders with a regular quarterly dividend payment. The date for this particular announcement is known as the declaration date. It is on this date that the company announces the specific dividend payment along with the holder of record date (aka record date) and the payment date. The company announces that a dividend payment of 25 cents per share will be payable March 31, 2012 (the payment date) to all shareholders of record at the close of business on March 16, 2012 (holder of record date). What does this all mean? Well the short story is that the company looks at its records on March 16 and anyone listed on the books as an owner of ABC Widget company will be eligible for the dividend payment (on March 31).

The one other important term to remember is the ex-dividend date. The ex-dividend date (typically two trading days before the holder of record date for U.S. securities) is the day in which a company begins trading without the dividend. In order to have a claim on a dividend, shares must be purchased no later than the last business day before the ex-dividend date. A company trading ex-dividend will have the upcoming dividend subtracted from the share price at the start of the trading day. Many times, the price of a stock will increase in anticipation of the upcoming dividend as the ex-dividend date approaches, yet will fall back by the amount of the dividend on the ex-dividend date.